ITU Training on Consumer Protection 21 – 23 March 2016

New Delhi, India

Consumer Protection in Digital Era Framework of QoS Monitoring and Consumer Empowerment

Presented by : Ms Sharizan Abdul Aziz Head, Monitoring and Compliance Department Monitoring and Enforcement Division Date : 22 March 2016

1 MCMC @ 2016

MCMC @ 2016 2

MALAYSIA IN BRIEF

1 CONSUMER PROTECTION IN CMA98 2

CONSUMER ISSUES 3

4

SELF REGULATORY FORUMS 5

EMPOWERING CONSUMERS 6

QUALITY OF SERVICE FRAMEWORK

|Malaysian Communications & Multimedia Commission|

MALAYSIA IN BRIEF

• Capital: Kuala Lumpur

• Official Languages: Bahasa Malaysia

• Ethnic Groups:

50.1% Malay

22.6% Chinese

11.8% Indigenous

6.7% Indian

8.8% other

• Religion: Sunni Islam

• Total Area: 330,803 km2

• Population: 30,953,000

• Population Density: 92 persons/km2

• Currency: Ringgit Malaysia (MYR)

• Anthem: Negaraku

MALAYSIA

MALAYSIA IN BRIEF

MCMC @ 2016

MCMC @ 2016 4

2 CONSUMER PROTECTION IN CMA98

CONSUMER ISSUES 3

QUALITY OF SERVICE FRAMEWORK 4

SELF REGULATORY FORUMS 5

EMPOWERING CONSUMERS 6

MALAYSIA IN BRIEF 1

Pursuant to the : Communications and

Multimedia Act 1998 (CMA)

Postal Services Act 1991 (PSA)

Digital Signature Act 1997 (DSA)

Industry developer and regulator for the converged communications and multimedia sector which covers Telecoms, broadcasters and ISPs

Postal and courier services

Digital certification authorities

• National Policy Objectives

• Transparency

• Principle of Self Regulation

• Technology neutrality

• Consumer protection

Fundamental Principles of CMA 98

Main Parts under the CMA

• Licensing

• Economic Regulation

• Technical Regulation

• Consumer Protection

• Social Regulation

CONSUMER PROTECTION IN CMA98

5 MCMC @ 2016

• Emphasize the empowerment of consumers • Ensures adequate protection measures in areas such as

dispute resolution, affordability and availability of services.

• Industry self-regulation

6 MCMC @ 2016

CONSUMER PROTECTION IN CMA98

MCMC @ 2016 7

KEY AREAS UNDER CONSUMER PROTECTION

Quality of Service Required

Applications Service

Rate Regulation Resolution of

Consumer Complaints

Mandatory Standards Complaints Bureau (Aduan

SKMM)

CMA 98 & General Consumer & Content Codes

Instruments

Consumer & Content Forum (Self Regulation)

Consumer Education & Engagement Programs

Prepaid Registration Guidelines –

Public Cellular Services

MCMC @ 2016 8

3 CONSUMER ISSUES

QUALITY OF SERVICE FRAMEWORK 4

SELF REGULATORY FORUMS 5

EMPOWERING CONSUMERS 6

MALAYSIA IN BRIEF 1 CONSUMER PROTECTION IN CMA 2

01 02

03

Increase in volume of task and complexity

Management of issues & quick response time

Accelerated growth of industry & consumers

CONSUMER ISSUES: ACCELERATED CHALLENGES

MCMC @ 2016

INCREASE IN VOLUME OF TASK AND COMPLEXITY

Top 5 Complaints • Poor Service Performance mainly on Quality of Internet Connection/Speed • Content mainly relating to New Media/Internet • SMS service particularly on Unsubscribed SMS mobile content services offered by External Content Providers (ECP) • Billing and Charging mostly on Unreasonable or Dispute of data charges • Unavailability or Poor Service Coverage particularly cellular and broadband including drop calls issues.

Top 5 Complaints • Poor Service Performance mainly on Quality of Internet Connection/Speed • Content mainly relating to New Media/Internet • SMS service particularly on Unsubscribed SMS mobile content services offered by External Content Providers (ECP) • Billing and Charging mostly on Unreasonable or Dispute of data charges • Unavailability or Poor Service Coverage particularly cellular and broadband including drop calls issues.

MCMC @ 2016 10

3525

2474

1974

1604

881

0

500

1000

1500

2000

2500

3000

3500

4000

Poor Service SMS Content Bill and Charging Poor ServiceCoverage

67.1%

(As Q4 2013)

Cellular Broadband

70.2%

(As Q4 2014)

72.2%

(As Q2 2015)

Pay TV

148.3%

(As Q4 2014)

144.8%

(As Q2 2015)

143.6%

(As Q4 2013)

70.1%

(As Q2 2015)

55.7%

(As Q4 2013)

62.7%

(As Q4 2014)

Per 100 households

Per 100 households

ACCELERATED GROWTH OF INDUSTRY AND CONSUMERS

Per 100 households

11 MCMC @ 2016

Nearly two-thirds of all mobile subscriptions are smartphone users Malaysia will become a “data” market by 2017

MCMC @ 2016 12

4 QUALITY OF SERVICE FRAMEWORK

SELF REGULATORY FORUMS 5

EMPOWERING CONSUMERS 6

MALAYSIA IN BRIEF 1

CONSUMER PROTECTION IN CMA 2

CONSUMER ISSUES 3

PURPOSE

To assess quality of service level of offered by operators;

To protect consumer interest in telecommunication industry;

MCMC @ 2016

QUALITY OF SERVICE (QOS) – MANDATORY STANDARD

Consumer Satisfaction Survey and Consumer codes

Testing and End Point Service Availability

Commission Determination on Mandatory Standards for Quality of Service

General Consumer Complaints Handling

Audit and Verification performed by MCMC

End Point Service Availability

Promptness in Answering Calls to Customer Hotline

Submission of Half Yearly/ Quarterly Reports by Operators

Billing Performance Assurance

QoS

S.104 of CMA – Power to Commission to Determination Mandatory Standards

S.104 of CMA – Power to Commission to Determination Mandatory Standards

S.104(3) – Minister issues direction (issued on

27 March 2002)

S.55 – Process to issue

Commission Determination

S.55(2) – Conduct Public Inquiry

S.57– Register

Determinations

Commission conducted public consultation to make recommendation to Minister

S.58 – Process to conduct public inquiry, eg. minimum 45 days and

within 30 days to publish inquiry report

Commission Determination on the Mandatory Standards on Quality of Service Effective date

Public Switched Telephone Network Service: Determination 1 of 2002 1 January 2003

Public Cellular Service: Determination 1of 2015 ( revised from Determination 2 of 2002) 1 January 2016

Dial Up Internet Access Service: Determination 3 of 2002 1 January 2003

Content Applications Services: Détermination 4 of 2002 1 January 2003

Public Payphone Service: Determination 3 of 2003 1 June 2004

Digital Leased Line Service: Determination 3 of 2009 (revised from Determination 4 of 2003) 1 June 2009

Broadband Access Service for Wired: Determination 1 of 2016 (revised from Determination 1 of 2007) 1 January 2016 (Network)

1 July 2016 (Consumer)

Broadband Access Service for Wireless: Determination 1 of 2016 (new) 1 January 2016 (Network)

1 July 2016 (Consumer)

MCMC @ 2016

DEVELOPMENT OF COMMISSION DETERMINATION MS FOR QOS

Website’s Link: http://www.skmm.gov.my/Legal/Instrument.aspx#

Fine not exceeding RM100,000 or to

imprisonment for a term not exceeding 2

years or both

Offence under section 242 of

the CMA

Mandatory Compliance

under s. 105(3)

Breach the MS

MCMC @ 2016

PENALTY AND ACTION TAKEN

RAISING THE BAR OF USER EXPERIENCE AND CONSUMER PROTECTION

16

RM446,000

RM245,500 RM200,000

RM1,630,000

RM2,835,000

Since 2012, the number of cases compounded by MCMC continues to rise as a result of proactive monitoring and enforcement.

Since 2013, Enforcement had started in strengthening its resources to focus on regulatory non-compliance cases.

Investigations were focused on issues that affect security and consumer protection.

Stepped up monitoring and enforcement activities to ensure better quality of service for communications services with a view for better consumer protection.

MCMC @ 2016 17

5 SELF REGULATORY FORUM

EMPOWERING CONSUMERS 6

MALAYSIA IN BRIEF 1

CONSUMER PROTECTION IN CMA98 2

CONSUMER ISSUES 3

QUALITY OF SERVICE FRAMEWORK 4

MCMC @ 2016

SELF-REGULATORY FORUMS

The Consumer Forum

The Access Forum

The Technical Standards Forum

The Content Forum

Under the CMA 1998, the MCMC can designate (or appoint) four industry forums.

Tasked to create “voluntary industry codes” relevant to their objectives.

General Consumer Code (GCC) and Content Code.

Internet Access Service Provider Code.

FUNDED BY MCMC New Initiatives: Dealers and Agents Code of Ethics, Compensation Mechanism, Sub-code for Mandatory Standards for the Provision of Mobile Content Services.

MCMC @ 2016 19

COMMUNICATIONS AND MULTIMEDIA CONSUMER FORUM OF MALAYSIA

Website’s Link: http://www.consumerinfo.my/

MCMC @ 2016 20

6 EMPOWERING CONSUMERS

MALAYSIA IN BRIEF 1

CONSUMER PROTECTION IN CMA98 2

CONSUMER ISSUES 3

QUALITY OF SERVICE FRAMEWORK 4

SELF REGULATORY FORUMS 5

21

1. QoS Tools for Consumer (speedtest)

2. Enhancement to the Consumer Portal to include Mobile Apps

3. ACE Campaign “Action for Consumer Empowerment”

1. The GCC review

2. The development of sub-code through GCC review on the compensation

3. Review of the MS for the Provision of Mobile Content Services

4. Completed the Review of MS for QoS; Wired and Wireless Broadband Access Service & Public Cellular Service.

1. Integrated Complaints Handling System (SPs/CFM/MCMC)

2. Processing & Administrative Fees On Complaints Handling By MCMC

1. Incentive based Regulation Non-Financial (Star rating award)

2. Dealers And Agents Codes of Ethics.

Code Reviews

Consumer Empowerment

Process & System

Improvement Industry Self Regulation

MCMC @ 2016

MCMC @ 2016 22

CONSUMER EMPOWERMENT PROGRAMS - INDUSTRY

No Action Items

1. Self-assessment and reporting

2. Street Coverage Maps

3. Compensation Mechanism As per GCC provision – General Principle of Compensation

4. Client Charter Enhancement

5. Critical Information Summary of T&C

6. Establishment of Standard Operating Procedure on regulatory compliance check for consumer offering

“Star Rating” Award

Part of the 3 years Strategic Consumer Empowerment plan

To evaluate and assess service delivery

To give recognition and instill compliance culture

To foster healthy competition among Service Providers

Service Provider

MCMC @ 2016 23

MEDIA LITERACY & ENGAGEMENT

INCENTIVE BASED REGULATION (NON-FINANCIAL) “STAR RATING” AWARD 2015/2016

24 MCMC @ 2016

• To evaluate and

assess service

delivery

• To give recognition and

instil compliance culture

• To foster healthy competition among Service Providers

25 MCMC @ 2016

“STAR RATING”

Dual Approach

Consumer Survey via CATI (Part 1)

Assessment & Evaluation (Part 2)

Cohesive & Balanced View

Star Rating

1 2 3

4 5 Culminates in an Award Ceremony presented by CMA Minister 26 MCMC @ 2016

FRAMEWORK

27

ASSESSMENT PARAMETER

Delighting Consumer (40%)

1 1 2 2 Quality of Service

(20%)

3 3 Network Investment

(20%)

4 4 Compliance to CMA

(20%)

1.Voice quality

2. Wireless Broadband quality 3.Billing performance 4. Complaint handling

1. Product, special package, service

2. Billing ,pricing

1. No of 3G/4G Sites 2. No of 3G/4G Transmitter 3. 3G/4GPopulation Coverage

1.No of Compound 2.No of Warning letters

MCMC @ 2016

MOBILE VIRTUAL NETWORK ADDITIONAL PARAMETERS

1 MVN do not have Network Investment

2 Special Criteria to replace Network Investment Parameter named as MVN Parameter

3 MVN Parameter consist of : creative product innovation brand positioning community service contribution

28 MCMC @ 2016

THE CONSUMER QUALITY OF SERVICE (QoS) EMPOWERMENT TOOLS

OBJECTIVES

MCMC @ 2016 30

MEASURE

Enables consumers to measure the Quality of Service (QoS) in the course of their normal daily activity against the service pledges and performance statistics published by fixed and mobile network operators on their websites and consumer portals;

1 1

ENHANCE

Enhancing the transparency of broadband and cellular performance between consumers and service providers

2 2

3 3 EVALUATE

The data gathered in the system from the QOS Tools can be used to evaluate the services offered and to analyze the service providers’ performance for further Quality of Service (QoS) improvement.

Users download apps and run test.

Apps available in the market and free to be downloaded.

Examples: Ookla Speedtest, Opensignal, nPerf, SpeedAnalysis etc.

Challenging for MCMC Consumer Empowerment app to be made popular for end users to download or use.

Apps only record signal strength of UE during dropped call event without comprehensive technical information.

Challenges:

• The user’s Internet quota - eat the users bandwidth

• The user’s phone battery life – apps running in background

• Users will bear the cost for more quotas for a service they do not use

EMPOWERMENT TOOLS/CROWDSOURCING : CHALLENGES

MCMC @ 2016 33

Broadband Access Service – Wired

Service Performance Advance Notice of scheduled downtime

Notify customers within 60 minutes of the occurrence Submit comprehensive report to Commission within 7

business days of the occurrence Service Disruption – must not be out of service for 3 hours or

longer and affect 500 or more customers Notify customers within 90 minutes of the occurrence Submit comprehensive report to Commission within 7

business days of the occurrence Service Activation Fulfillment

Fulfilled within 24 hours -Not less than 95.0% Fulfilled within 72 hour – 100%

Service Restoration Fulfillment Fulfilled within 24 hours -Not less than 95.0% Fulfilled within 48 hour – 100%

Billing Related Complaints Shall not be more than 1.0% per quarterly reporting period

Non-Billing Related Complaints Must not be more than 6.0 complaints per 1,000 customer

per quarterly reporting period Promptness in resolving customer complaints

60.0% within 3 business days 90.0% within 5 business days 95.0% within 15 business days

Promptness in answering calls to Customer Hotline 80.0% within 20 seconds 90.0% within 40 seconds

Technical performance DSL Throughput

Upload & Download – 70% of the subscribed level of broadband speed for 90.0% of the time

Latency : ≤than 85ms, 95.0% of the time based on test sample

Packet Loss: ≤1.0% Fibre Throughput

Upload & Download – 90% of the subscribed level of broadband speed for 90.0% of the time

Latency : ≤than 85ms, 95.0% of the time based on test sample

Packet Loss: ≤1.0% Access Network Utilization – not more than 70.0% of uplink bandwidth provided

MCMC @ 2016 34

Broadband Access Service - Wireless

Technical performance TDD Throughput

Download – not less than 650Kbps, 80.0% of the time for TDD

Latency : ≤ than 250ms, 70.0% of the time based on test sample

Packet Loss: ≤3.0% FDD Throughput

Download – not less than 650Kbps, 65.0% of the time for FDD

Latency : ≤than 250m, 70.0% of the time based on test sample

Packet Loss: ≤3.0%

Service Performance Service Disruption – must not be out of service for 3

hours or longer and affect 500 or more customers Notify customers within 60 minutes of the

occurrence Submit comprehensive report to Commission within

7 business days of the occurrence Billing Related Complaints

Shall not be more than 1.0% per quarterly reporting period

Non-Billing Related Complaints Must not be more than 6.0 complaints per 1,000

customer per quarterly reporting period Promptness in resolving customer complaints

60.0% within 3 business days 90.0% within 5 business days 95.0% within 15 business days

Promptness in answering calls to Customer Hotline 80.0% within 20 seconds 90.0% within 40 seconds

MCMC @ 2016

Mobile Content Issues User not aware it is subscription-based

service

Unsolicited promo SMS

Unknowingly being charged for SMS

received

Indecent & Inappropriate language used in the advertisement /SMS

promotion Misleading

advertisement/SMS promotion

Received unsolicited SMS/service

Unclear & misleading

advertisements

Termination request not processed

MCMC @ 2016

Complaint Statistics

0

200

400

600

800

1000

1200

1400

1600

1800

2013 2014 2015

518

1036

1730

272 240142

225 203 199

7 16 59

Celcom

DiGi

Maxis

U Mobile

Numbers of MCS Related Complaints from 2013 to 2015

• Complaints on Mobile Content Services shows an increasing trend from 2013 until 2015 . • Work is in progress to review the existing “Mandatory Standards for the Provision of Mobile Content Services (MS for MCS)” to ensure relevancy and to curb the abuse by unscrupulous Content Providers.

MCMC @ 2016 37

Mobile Virtual Network Framework

SCOPE OF THE MS

Commencement of Service

Continuity of Service

Refund Requirements

STAGE 1

STAGE 2

STAGE 3

STAGE 4

Service termination

Objectives

• To promote regulatory transparency

• Promote self regulatory framework among industry players

• To provide comprehensive guide to

all MVN service providers to the compliance to relevant regulatory tools